Although credit cards are becoming a more acceptable part of the financial scene, they are still regarded with suspicion by many as being a major part of the live now pay later syndrome. Along with hire-purchase, rental and leasing schemes, they provide encouragement to spend more money. Of course, it is only the foolhardy who yield to the temptation to live, temporarily at least, beyond their means, and such people would no doubt manage to do so even without credit cards.
Advertising campaigns have, however, promoted a growing realization of the advantages of these small pieces of plastic. They obviate need to carry large amounts of cash and are always useful in emergencies.
All the credit card organizations charge interest on a monthly basis which may work out as high as 25 per cent a year, yet judicious purchasing using a card can mean that you obtain up to seven weeks, interest-free credit. Using the card abroad, where items frequently take a long time to be included on your account, can extend this period even further.
It is worthwhile shopping around before deciding on a particular credit card. It is necessary to consider the amount of credit granted; interest rates, which may vary slightly; the number and range of outlets, though most cards cover major garages, hotels, restaurants and department stores; and of course, what happens if your card is lost or stolen. A credit card thief may be sitting on a potential goldmine particularly if there is a delay in reporting the loss of the card.
However, if used wisely, a credit card can cost nothing, or at least help to tide you over a period of financial difficulty.
26. Which of the following can not make you spend more money?
A. Credit cards. B. Hire-purchase.
C. Rental and leasing schemes. D. None of the above is right.
27. The foolhardy are people who_______.
A. spend more money than they have B. spend less money than other people C. save money D. make money
28. The disadvantage of credit cards is_______.
A. to enable you to buy things without carrying large amount of cash
B. to encourage people to spend more money
C. to be always useful in emergencies
D. to help people tide over a period of financial difficulty
29. According to the passage, credit cards are made of_______.
A. paper B. gold
C. plastic D. tin
30. Deciding on a particular credit, you do not have to consider______.
A. the amount of credit granted
B. the number and range of outlets
C. the possibility of loss of money
D. the department stores where you are going to use your credit cards
26. D 27. A 28. B 29.D 30. C
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